Udeep Shrestha, heir to the well-known Panchakanya Group, is a member of a new generation of Nepali business people taking over traditional, family-owned businesses and turning them into major corporate houses. Equipped with the right education, the young generation is adapting quickly to the globalized world and making every effort to put Nepal on the international map for trade, business and industry.
Shrestha, who now leads the decades-old multi-industry conglomerate, is also involved in facilitating and promoting entrepreneurship in Nepal. Sunny Mahat of ApEx caught up with him to talk about the country’s current economic situation and opportunities for entrepreneurs.
How is the Panchakankya Group adapting to the changing times and the economic volatility brought about by the pandemic?
The past two years have been tough for most businesses, right around the world. At Panchakanya, we have taken most of our business activities online. We have also adopted digital documentation within the company and our dealer network, as far as practicable.
Similarly, we have reworked our minimum inventory level, receivable policy and cash flow cycle to make them as lean as possible.
Covid-19 is being seen as a threat to Nepali businesses. Do you also identify possible opportunities it might have created?
Yes, I guess every challenge brings with it an opportunity. The online space has now become the platform to be. With people being compelled to embrace mobile payments and more online buying, studying customer behavior and perception has opened countless opportunities in this arena. The past two years have been tough, but they have also led to a rapid adoption of e-commerce.
Similarly, with lower interest rates and an e-trading platform, the stock market has become more vibrant.
Do you think, after all these years, Nepali businesses can still blame ‘political instability’ for their failures or should businesses see it as just another threat?
Political instability is not something new in Nepal; it has been around for decades. As a result, I believe most businesses have already adjusted to the always-looming political uncertainty. Political instability may not be the only reason for business failure, but it is a reason that undermines and restricts the growth of most companies. It also discourages new investments. It may not be the primary reason a business fails but it is definitely the main reason many businesses may not at all start.
As the new NYEF chair, what are your plans to foster entrepreneurship among youngsters?
At NYEF, we have been utilizing the lockdown to enhance learning among our members and young entrepreneurs. Organizing these online learning sessions across our 10 chapters has allowed us to reach entrepreneurs around the country with valuable content.
NYEF, as the national host, is also currently organizing the Entrepreneur’s World Cup (EWC). The EWC is a global competition for startups with a cash prize of $500,000. NYEF is also closely working with ILO and the Ministry of Industry in developing the much-needed startup policy that will be a guideline for the use of the government’s recently declared challenge fund for subsidized loans for startups.
Further, we are working on developing an entrepreneurs’ portal. The online portal will have information every entrepreneur needs regarding registering, managing and growing a company. We feel this will be a good resource center for Nepali entrepreneurs.
It is also NYEF’s intent to be the voice for youth entrepreneurs in the country. To achieve the same, NYEF along with its chapters have been consistently communicating with all three levels of the government to address the challenges faced by startups and young entrepreneurs.
As a young businessperson yourself, do you think Nepal’s business community is accommodating and inviting for young people?
I think Nepal’s business community has always been inviting and encouraging to the youths. It is the bureaucracy, political uncertainty, challenges in access to finance and unclear policies and regulations that discourage the youth from coming back and doing business in Nepal.
It is important to understand that startups and new businesses are vital to the business ecosystem and key drivers of economic growth and sustainability.
